v2.4.0.8
Postemployment Benefit Plans
 6 Months Ended
Jun. 30, 2013
Postemployment Benefit Plans  
Postemployment Benefit Plans
Note 12—Postemployment Benefit Plans
 
 
One-time termination benefit plans
During the six months ended June 30, 2013, we committed to a plan to improve the organizational efficiency of our shore-based support activities worldwide.  In connection with this initiative, we established certain one-time termination benefit plans for shore-based employees in the U.S. and the U.K. and for expatriate resident employees worldwide that were or are expected to be involuntarily terminated during the period from May 2013 through December 2014.  The plans generally offer affected individuals a lump sum benefit payment equivalent to between four weeks and 52 weeks of the employee’s weekly base salary, calculated based on the employee’s annual base salary and years of service with additional amounts paid to those employees that would otherwise have been eligible for a bonus payment under our annual incentive program, and allowed for early retirement and immediate vesting for qualifying individuals under our defined benefit plans and other postretirement employee benefit plans.
 
In the three and six months ended June 30, 2013, we recognized $10 million of expense associated with severance-related costs under these one-time termination benefit plans.  As of June 30, 2013, our payments for involuntary terminations under these plans were less than $1 million.
 
Defined benefit plans and other postretirement employee benefit plans
We have several defined benefit pension plans, both funded and unfunded, covering substantially all of our U.S. employees, including certain frozen plans, assumed in connection with our mergers, that cover certain current employees and certain former employees and directors of our predecessors (the “U.S. Plans”).  We also have various defined benefit plans in the U.K., Norway, Nigeria, Egypt and Indonesia that cover our employees in those areas (the “Non-U.S. Plans”).  Additionally, we offer several unfunded contributory and noncontributory other postretirement employee benefit plans covering substantially all of our U.S. employees (the “OPEB Plans”).
 
The components of net periodic benefit costs, before tax, and funding contributions for these plans were as follows (in millions):
 
   
Three months ended June 30, 2013
    
Three months ended June 30, 2012
  
   
U.S.
Plans
    
Non-U.S.
Plans
    
OPEB
Plans
    
Total
    
U.S.
Plans
    
Non-U.S.
Plans
    
OPEB
Plans
    
Total
  
Net periodic benefit costs
                                                
Service cost
  
$
15
    
$
7
    
$
—
    
$
22
    
$
12
    
$
9
    
$
—
    
$
21
  
Interest cost
    
16
      
5
      
—
      
21
      
15
      
8
      
—
      
23
  
Expected return on plan assets
    
(17
)
    
(5
)
    
—
      
(22
)
    
(16
)
    
(8
)
    
—
      
(24
)
Settlements and curtailments
    
1
      
—
      
—
      
1
      
—
      
—
      
—
      
—
  
Actuarial losses, net
    
13
      
1
      
—
      
14
      
10
      
1
      
—
      
11
  
Prior service cost, net
    
(1
)
    
—
      
—
      
(1
)
    
(1
)
    
—
      
—
      
(1
)
Transition obligation, net
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Net periodic benefit costs
  
$
27
    
$
8
    
$
—
    
$
35
    
$
20
    
$
10
    
$
—
    
$
30
  
                                                                 
Funding contributions
  
$
59
    
$
3
    
$
—
    
$
62
    
$
100
    
$
9
    
$
1
    
$
110
  
 

 
   
Six months ended June 30, 2013
    
Six months ended June 30, 2012
  
   
U.S.
Plans
    
Non-U.S.
Plans
    
OPEB
Plans
    
Total
    
U.S.
Plans
    
Non-U.S.
Plans
    
OPEB
Plans
    
Total
  
Net periodic benefit costs
                                                
Service cost
  
$
29
    
$
14
    
$
—
    
$
43
    
$
24
    
$
16
    
$
—
    
$
40
  
Interest cost
    
31
      
11
      
1
      
43
      
29
      
13
      
1
      
43
  
Expected return on plan assets
    
(34
)
    
(11
)
    
—
      
(45
)
    
(31
)
    
(13
)
    
—
      
(44
)
Settlements and curtailments
    
1
      
—
      
—
      
1
      
2
      
—
      
—
      
2
  
Actuarial losses, net
    
26
      
2
      
—
      
28
      
20
      
2
      
—
      
22
  
Prior service cost, net
    
(1
)
    
—
      
—
      
(1
)
    
(1
)
    
—
      
—
      
(1
)
Transition obligation, net
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Net periodic benefit costs
  
$
52
    
$
16
    
$
1
    
$
69
    
$
43
    
$
18
    
$
1
    
$
62
  
                                                                 
Funding contributions
  
$
60
    
$
20
    
$
1
    
$
81
    
$
103
    
$
17
    
$
2
    
$
122